- By quade
- 25 October 2023
Recent Cyberattacks Threaten the Philippines BPO Industry Reputation
The recent cyberattacks perpetrated against various Philippine government agencies and businesses have left the country reeling. Not only has this exposed valuable information to hackers and cybercriminals, but it has also caused unrest among Philippine businesses.
In particular, businesses that rely on digital services, such as BPOs have been left wondering whether these attacks will affect the industry’s reputation and decrease investment. The IT and Business Process Association of the Philippines (IBPAP) has released a statement, warning that further cyber attacks could turn investors off from supporting the Philippine BPO industry. They urge government officials to take stronger action against these threats.
Cyberthreats to the Philippines and How it Affects the BPO Industry
In a series of lightning cyber attacks, several major government websites, including the Department of Science and Technology (DoST), the Philippine Statistics Authority (PSA), the Philippine Health Insurance Corp. (PhilHealth), the Philippine National Police (PNP), and the House of Representatives, were hacked.
These recent cyberattacks highlighted a significant vulnerability in the Philippine’s cybersecurity infrastructure. None of these organizations possessed the requisite measures to deter these attacks due to their lack of in-house cybersecurity professionals within their IT teams.
Unfortunately, even institutions that were not hacked were still affected by these cyber attacks, as members of the BPO industry expressed concern about how these hacks could reflect badly on the country as a whole and affect their desirability as an investment destination.
In a recent statement, the IBPAP highlighted the issues of the country’s lack of. cyber security.
“The IBPAP is deeply alarmed by these malicious acts, which not only jeopardize the operations of the IT-BPM (information technology and business process management) industry but also the reputation of the Philippines as an attractive investment destination.”
– Jack Madrid IBPAP President and Chief Executive Officer
A follow-up report by the United States Agency for International Development (USAID) also adds that the poor ICT infrastructure in the Philippines also affected the private sector. This has left BPO companies operating here vulnerable to data breaches.
BPO industries remain one of the largest sectors in the Philippine government, making their threat a serious risk to the Philippine economy.
“The Philippine IT-BPM industry, which is projected to generate revenue of $35.4 billion by the end of 2023, acknowledges that a successful cyberattack could potentially lead to substantial losses. More importantly, the ramifications of cyberattacks extend beyond immediate financial losses. They can inflict lasting damage on businesses, leading to client attrition, reputational harm, and long-term financial implications”
– Jack Madrid IBPAP President and Chief Executive Officer
To combat this situation, Mr. Madrid and the IBPAP have called for reforms to deal with cybersecurity threats.
The IBPAP is not the only one that has concerns about the current state of cybersecurity in the Philippines. Dominic Ligot, founder of Data Ethics PH, lent his voice by urging the government to take more action against cybersecurity threats like this.
He suggested a proactive approach to improving existing firewalls and recommended the government hire additional experts to deal with these agencies and maintain specialized rapid response teams for cyber threats. This will hopefully speed up the adoption of cybersecurity measures and prevent hacks like this.
